METRO Mayor Andy Street has intervened in the battle over Redditch-based aerospace and automotive giant GKN.
Mr Street, the Mayor of the West Midlands Combined Authority (WMCA), has written to Greg Clark, the Secretary of State for Business, Energy and Industrial calling on him intervene in the bid by turnaround specialists Melrose Industries for the global engineering giant.
He says: “I call on you and your department to review the bid by Melrose Industries, and determine if Government should halt the takeover.”
I urge you to ensure that the outcome of your review will:
n Protect GKN workers’ jobs in the West Midlands and across the UK
n Protect the pensions of members of GKN’s pension scheme
n Retain vital engineering and manufacturing experience in the West Midlands
n Guarantee long-term research and development investment.
Melrose has been stalking GKN for weeks, offering £7.4billion for the company and telling shareholders it can add value to the firm by separating its aeronautics and automotive wings, the two most profitable parts of the company.
However GKN says Melrose has seriously undervalued the company and has promised shareholders increased profitability and the return of up to £2.5bn over the next three years.
Mayor Street concludes: “Given our shared belief in the importance of Local Industrial Strategy to the West Midlands, I hope you will take every measure necessary to secure the future of this great West Midlands-based business.”
Redditch is a non-constituent member of the WMCA.
